w Read&Write X ED = ECO2050_Lecture_Monopolistic_( X PRE ECO2050_Exam_2018.pdf Q Suppose a monopolist faces two X Homework Help - Q&A from On x + X C File | C:/Users/David%20Popoola/Downloads/ECO2050_Exam_2018.pdf . . . 2 of 4 + Co | Page view A Read aloud | T) Add text Draw Highlight V Erase P Co ECO2050/4/SEMR2 2017/18 1. Suppose a monopolist faces two distinct groups of consumers: Group 1 and Group 2. The demand functions for Group 1 and Group 2 are, respectively: Di(PI) = pi" and D2(p2) = p2"2, where p1 denotes the price charged to consumers belonging to Group 1 and p2 denotes the price charged to consumers in Group 2. (a) Describe this type of price-discrimination and its key features. [20%] (b) What is the economic interpretation of 71 and 72? [20%] (c) Assume that 1 p2.' Is this statement True or False? Justify your answer mathematically and provide economic intuition. [60%] 2. Consider the Hotelling model for vertical product differentiation in which there are two firms, denoted by A and B, located at points a and b (0